Plains land value gains
Double-digit gains in land values are the biggest story in the latest survey of rural economic conditions by the Federal Reserve Bank of KC. Here's an excerpt:
"Rising farm income, especially for crop producers, drove nearly 20% annual value gains for Kansas and Nebraska farmland. In Oklahoma and the Mountain states, annual farmland value gains were not as sharp due to extremely dry conditions threatening crop yields and limiting cattle grazing," according to Fed economist Brian Briggeman. "Some survey respondents reported record sales prices, and around half expected cropland values would rise further in the coming months."
But, it sounds like land rents aren't keeping pace with values, which has some ag lenders concerned, the Fed says. Are you seeing any land value red flags in your neck of the woods?